Posts from ‘January, 2012’

POSTING ON SHELL BLOG BY “SirPhil” ON 31 Jan 2012

“Having read that the former RBS-CEO, Fred Goodwin, has been stripped of his knighthood by UK authorities. Makes you wonder if and when Sir Phil Watts will stripped of his one. No doubt Phils selfish behaviour at the helm of Shell did more harm to the industry and private investors than Fred.”

EXTRACT: The correspondence between Mr Watts and Mr Van de Vijver began in June 2001 when Mr Van de Vijver took over as head of exploration and production. He was promoted after Sir Philip was made chief executive partly because of his success with reserves. The two engaged in a “pointed dialogue”, with Mr van de Vijver complaining Shell had overbooked reserves throughout the 1990s.

Hamilton said the industry, represented by Shell Oil Co., also hasn’t budged on health and safety provisions the union wants in its new three-year contract.

The national oil contract bargaining is heading toward a midnight Tuesday deadline, but the two sides seem far apart on pay and safety rules, a local union member said today.

Eric Hamilton, chairman of the workmen’s committee at the Motiva Enterprises Port Arthur refinery, said the industry side to date has offered a pay increase of between 1.5 percent and 2 percent a year.read more

An eminent group of scientists and professionals have sent a collective communication to the Norwegian Government Pension Fund recommending disinvestment in the oil giant Royal Dutch Shell on ethical grounds.

By John Donovan

An eminent group of scientists and professionals have sent a collective communication to the Norwegian Government Pension Fund recommending disinvestment in the oil giant Royal Dutch Shell on ethical grounds.

The pension fund has already dis-invested in several mining and forestry companies “known to cause severe environmental and human rights related harm in their operations.”

If the campaign is successful, which focuses on Shell’s horrendous track record in Nigeria, Royal Dutch Shell would be the first oil and gas company the fund would exclude from its portfolio.read more

Gazprom Expansion of Sakhalin-2 LNG Plant May Cost $7 Billion

January 30, 2012, 5:20 AM EST

By Jake Rudnitsky

Jan. 30 (Bloomberg) — OAO Gazprom and its partners in the Sakhalin-2 project may decide on expanding their liquefied natural gas plant this year, to add supplies by 2018, said Andrey Galaev, the ventures chief executive officer.

An expansion may cost $5 billion to $7 billion based on preliminary estimates, Galaev told reporters today in Moscow. Depending on changes in oil and gas prices, the construction cost may drop as low as $3 billion or climb as high as $8 billion, he said.read more

Royal Dutch Shell CEO Peter Voser is reluctantly considering how best to wean Shell off the supply of blood tainted Iranian oil. Shell is one of the biggest consumers of Iranian oil – see article below.

The relationship between Shell and Iran has continued unabated for many years, while the fanatical Iranian regime has been busy using the funds generated to supply roadside bombs to kill and maim Nato soldiers in Iraq and Afghanistan and fund its Nuclear Bomb program. The oil revenue is crucial to Iran. Hence the sanctions and sanctions busting by Shell.

I am afraid that there clearly is very little news (i.e. aspects of Shell’s work) for the Donovan’s to rant on about recently. A great deal is re-printed as though it’s new but is merely old stories and anti-Shell propoganda that is old history. Yes, we learn from history but we don’t have to regurgitate it repeatedly. The lead story today linking Shell with Jewish skin lamp shades is really gutter press and totally deplorable nonsense from the Donovan’s. read more

A spill last month from the 200,000 barrel-a-day Bonga field off Nigeria, which produces nearly 10 percent of Nigerias crude, led Shell to stop production from the facility, the company said on Dec. 21. The export line at Bonga leaked almost 40,000 barrels of crude during a tanker loading, according to Shell estimates, making it Nigerias worst offshore spill in more than a decade.read more

Sunday Express

ROYAL Dutch Shell is set to gush full-year profits of $27.3 billion (£17.4 billion) for 2011, a 175 per cent increase in a year.

The expected surge in earnings comes despite fourth-quarter profits hurt by lower demand because of the warm winter weather.

The results, buoyed by the high cost of crude oil last year, represent a spectacular return to form for the oil giant which reported disappointing full-year profits for 2010 of $9.8 billion (£6.3 billion).read more

HIGHER annual and quarterly profits from oil heavyweight Royal Dutch Shell are this week expected to ignite the fury of hard-pressed drivers who continue to face near record prices at the petrol pump.

But the figures are likely to spell good news for investors as analysts raise the prospect that Shell, which boasts one of the largest dividends on the FTSE, may recommend an increase in the pay-out.

Although both full-year and quarterly numbers will be released, the City will focus on profits for the last three months of 2011, which are expected to be about 20 per cent higher compared to the same period in 2010.read more

Shells renewed interest in offshore Nova Scotia is part of a plan to expand its exploration efforts globally, an industry analyst says.

Mark Gilman, an oil and gas analyst with the Benchmark Co., said the petroleum giant has been on a lease-buying spree over the last year or two after previous projects failed to produce results.

“One might call it an accelerated upstream reinvestment drive after a period in which their upstream results had delivered somewhat less than they might have hoped,” he said in an interview earlier this week from New York.read more

(Reuters) – The United Steelworkers union warned on Saturday that a strike by U.S. refinery workers as early as 12 a.m. Wednesday was becoming more likely due to “the lack of a more substantive response from the industry.”

Union and oil company negotiators have been meeting since January 17 to hammer out a new three-year agreement for workers at nearly two-thirds of U.S. refining capacity.

Union negotiators have not sent out a similar warning to refinery workers in the past three rounds of contract talks with the industry.read more

The Sun newspaper published an article horrifically confirming, following a DNA test, that a lampshade bought at a New Orleans car boot sale is made from human skin. A gruesome relic from Nazi crimes against humanity in the 2nd World War. As the main financier of the Nazis, does Royal Dutch Shell bear any moral (or legal) responsibility for the crimes of Hitler and his equally evil henchmen?

By John Donovan

Yesterday, after 70 years, Norway apologized for the deportation of 773 Jews from Nazi occupied Norway during World War 2. The majority were shipped to concentration camps and only 34 survived. See news report below.

Royal Dutch Shell has much more to apologize for about its Nazi past.

Shell and its Nazi leader Sir Henri Deterding, conspired directly with Hitler, financed Nazi Germany, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis.

In March 2011, the chief corporate lawyer at Royal Dutch Shell threatened us with legal proceedings in relationship to this sensitive subject. We are still waiting for Shell to take any action. read more

Peter Voser, chief executive at Royal Dutch Shell, said his company might take some time before suspending purchases…

By Dmitry Zhdannikov

DAVOS, Switzerland | Fri Jan 27, 2012 6:33am EST

(Reuters) – As the European Union prepares to ban Iranian oil and the United States turns the screw on payments, oil executives and policymakers say China and Russia stand to gain the most and Western oil firms and consumers may emerge the biggest losers.

Iran will continue to sell much the same volume of oil – 2.6 million barrels per day or around 3 percent of world supply – but almost all of it will flow to China, they reason. And being pretty much Iran’s only remaining customer, Beijing will be able to negotiate a much reduced price.read more

In a front page lead story in the Financial Times, our site was properly credited with breaking news of the restructuring plans of Peter Voser.

FROM OUR ARCHIVE: EXTRACT FROM A RELATED EMAIL MESSAGE SENT BY JOHN DONOVAN TO OVER 400 SENIOR SHELL EXECUTIVES

Congratulations!

I am writing to offer our best wishes on your appointment/new title, as announced on our website royaldutchshellplc.com within the lists of Shell senior executive appointments we published on 22 June and 3 August.

The unauthorised publication of leaked Shell confidential information on our site has become a news event in its own right, regularly reported by The Wall Street Journal and other news organisations.read more

Shell is very different from Enron. We were criticized for that some time ago and Im glad we have a absolutely rock-solid way we do business. And, if you read our annual report, you read our footnotes and all the details, everything is in there. Its all completely transparent, as far as Shell is concerned.

Sir Philip Watts, Group Chairman, Royal Dutch Shell Group

By John Donovan

During a Bloomberg interview in 2002, with the then Group Chairman of Royal Dutch Shell, Sir Philip Watts, reference was made to the core Royal Dutch Shell business principle of complete transparency.

The following is an extract from his exchange with Guy Collins of Bloomberg on 8 February 2002: –

COLLINS: I want to ask you about Enron and any parallels there. Do you have any off balance sheet liabilities? Do you have trigger mechanisms in place that make you vulnerable to changes in the share price or credit ratings? read more

SHELL BLOG

Comments

Bogus Group: Further to my post on this blog, 28 August'17, there may be some interest an an article in yesterday's Upstream "Trial set for clash of LNG players".

TotallyHackedOff: Shell - as I am sure with many global super majors- is heavy with narcissists at all levels. Lots of people like Trump rollicking around- get in their way and you’re a gonner! See you later Rexy baby!

TotallyHackedOff: In reply to Bonus Group and Another Concerned Employee- its clear reading from your posts that Shell and BG shared many business cultural similarities making the tie-up an obvious one. I know of a few Shell employees who resigned, joined BG and are now back at Shell again- it stinks of a plant/trojan horse ending! It is well known that Shell has an 'inner circle' and if you find yourself outside that as many of the technical folk do, you don't stand a chance. Its all a bit wink, wink nudge, nudge. I even remember one manager (now a VP of something) telling me how I needed to 'read between the lines' which made me think it was all a load of bollocks and how the politically adept arse kissers rose through the ranks blissfully unaware of how their actions impacted their colleagues. The alpha men and women were all the same- keen to get ahead at anyones expense and doing secret backroom deals. Its one ginormous playground and the bullies will win as they are keeping the other bullies in place.

Bonus Group: 'Another Concerned Employee'talks about Shell's 'scooby-doo' business priciples, BG's were just as opaque. If you asked someone in HR about policy you would be deflected to 'The Portal' and left to fend for yourself. Often the policies conflicted with each other and had no foundation in law. This was reflected in the hypocritical management 'do as I say, not as I do' policy.
The closest experience most of BG Senior Management had of oil rigs and platforms was reading about them in comic books. The Brasil Asset was a complete shambles with its 'Simple Simon' approach to geoscience and cappuccino lifestyle. Unfortunately, most of these overpaid sociopaths migrated to Shell and are waiting, mouth's open for their next bonus. Shell must be trying hard to find ways to cover up grotesque errors in reserves booked by this Asset. Hopefully, Shell's assurance process is better than BG's with its £2Bn failure.

Yet Another Concerned Employee: Carillion, for whom the bell tolls! Remarkable that a Shell Executive should have a finger in this pie with its aggressive auditing practices. More 'pulling the wool' over the shareholder's eyes. Were the auditors asleep at the wheel when this was happening? There should be a full investigation, and those responsible made accountable. Perhaps, sunny Brunei is a safe haven? I wonder what the extradition treaties between the UK and Brunei are?

Another Concerned Employee: Shell HR finds it easy to overlook its fake scooby doo business principles whenever it suits them. A number of staff implicit in OPL and the spin doctors trying desperately to cover up the crisis are still on payroll. It won't surprise anyone that Ceri was one of Brinded's loyal lapdogs during his dictatorship. Also no surprise she landed such a sweet job in Brunei.

Concerned Employee: Not sure if you know but..
Cerie Powell - ex EVP exploration now MD Brunei Shell Petroleum was a non exec director of Carillion (now in liquidation). She resigned once she was demoted to Brunei in 2016 (?) but given the news around the legacy issues involving Carillion, should she really hold a senior position in Shell Group ?

Bonus Group: It is understandable that a niche now exists in the market for a company similar to BG Group, but for Neptune Energy to set its aim at emulating and becoming like BG is nothing short of horrifying. Why anyone should wish to recreate the inept management, twisted HR policies and rancid technical half truths of BG Group in order to deceive the shareholders is beyond comprehension. If they do, then the Serious Fraud Office should be on the alert. Sammy 'two pools', whose past remit included selling Enterprise Oil to Shell, rather than ENI is made of sterner stuff. That said, his nuclear ambitions did fall somewhat short of those of Kim Yong Un. Let's wish Neptune Energy a long, scandal free future and greater integrity than bungling BG with its House of Cards and flamboyant ineptitude.

Bogus Group: Following the acquisition of Engie the Financial Times headline “Neptune Energy sets aim on being the next BG Group” may have sent a chill through some. To think there could possibly be a rise from the ashes is an alarming prospect
However there was some comfort in the company chairman statement “We have the opportunity to take the time to get it right”.
Hopefully this means their Ethics and Compliance foundation will actually be more than just another policy open to distortion by misconduct.

Bill Campbell: Is the New York City case against Oil Companies justifiable or just hot air?

Many, if not all prestigious US scientific journals estimate largest source of air pollution in US is caused by vehicle emissions. Current estimates that US has some 260 million automobiles and 11 million trucks. It is the daily emissions from these vehicles that are the cause of scientific concern. But anybody visiting Florida, and following a construction truck, will be familiar with black smoke in copious amounts emitting from the vertical exhaust pipe, sometimes it's so bad it can restrict your vision but Florida is not the only state of the US that does not require emission control, there are many more, monitoring for example (like a UK vehicle MOT) is not legally required or carried out.

So perhaps De Blasio should start suing these delinquent states.

In any case, I find the whole matter ludicrous in a country, where their President claims that human activity is not related in any way to global warming and appoints a head of EPA who is also so inclined (a man described by NY Times as an arsonist in the Fire Station) so why does Shell et all not call as witnesses in their defence the current EPA Director, or otherwise why does De Blasio not start by suing those states that allow millions of vehicles to pollute the atmosphere daily.
Bill

Bonus Group: Further to my last post on this blog. Sound Energy have now arranged a slap-up bean feast for their shareholders to be held on 15th February at Grace Hall, Leadenhall Street, London. Drinks at Carriages afterwards. Dress is formal so don't expect too energetic a food fight. Attendees must pay for their own tickets! All will be revealed about the new Coro strategy. You may recall that Sound shareholders will receive Coro shares as a result of the divestment of Sound's Italian assets. The question is whether Sound shareholders will end up in the soup.

Bonus Group: There are rumblings in the ether about Rockhopper Exploration plc having failed to perform Due Diligence with integrity in respect of their purchase of the Italian focused company Mediterranean Oil and Gas (MOG) in 2014, and in particular MOG's asset, the Ombrina Mare oil field.
Following the decision in February 2016 by the Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field, the company has considered its legal options with regard to obtaining damages and compensation from the Republic of Italy for breaching the Energy Charter Treaty (ECT).
Could this have anything to do with the sudden and unexpected departure of Rockhopper's Chief Operating Officer, one 'Good Time' Fiona MacAuley? Fiona, a Chartered Geologist, started her career with Mobil North Sea Limited in 1985 and has subsequently held key roles in a number of leading oil and gas firms across large mid and small cap E&Ps including BG and Hess.
Fiona is now Chief Executive Officer of Echo Energy plc where Stephen Whyte (also ex BG) is a Non-Executive Director, previously having been Chairman of Sound Energy. Fiona will also become a Non-Executive Director of Saffron Energy plc. It is proposed that Saffron acquires Sound Energy's portfolio of Italian interests and permits through the acquisition by Saffron of Sound Energy Holdings Italy Limited (SEHIL). SEHIL holds all of Sound Energy's Italian oil and gas interests through its own wholly owned subsidiary, Apennine Energy SpA (APN). It is proposed that Saffron will be renamed Coro Energy plc.
This is yet another 'reverse takeover' by the Sound Energy/Echo Energy Team. The share options for the directors are raining on them like confetti. Could there be bonuses in store for the Directors of this association of companies where the paint is never allowed to dry?
Plenty of 'smoke and mirrors' and wool being pulled over the shareholders' eyes in this can of worms.

John Donovan’s ebooks

EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZONEBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.